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The Corporate Executive Board: What the Best Companies Do


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CORPORATE LEADERSHIP COUNCIL ® FEBRUARY 2007
www.clc.executiveboard.com

LITERATURE K EY FINDINGS
Best Practices
in Highly Functioning Recruiting Departments

Council research reveals that recruiting departments have implemented one or more of the following imperatives associated with
various stages of the recruiting process to minimize time to productivity and maximize quality of hire:

CONDUCTING
REQUISITION SOURCING INTERVIEWING EXTENDING THE BACKGROUND ONBOARDING
CREATION OFFER CHECKS

Minimize the number Manage sourcing Assign process Coordinate efforts of Tailor background Adopt an onboarding
of individuals and structure, management the recruiting checks to each program that creates
time involved in relationship with responsibilities to the function and hiring position to improve accountability and
requisition approval. business units, recruiting function managers to extend the pre-screening facilitates a variety of
internal sourcing, during the interview employment offers. process. teaching methods.
and vendor phase.
management as a
talent pipeline
business model.

The following research presents and discusses the best practices for each of the stages described above:

REQUISITION
Minimize the number of individuals and time involved in requisition approval.
CREATION

Council research reveals that companies typically minimize the number of individuals and time involved in the requisition approval
process to improve hiring practices and fill vacant positions quickly. As such, companies begin the requisition process with the hiring
manager and require the approval of one to four individuals associated with the hiring business unit, HR or the recruiting function,
and in some instances, finance. The process typically lasts between one day and one week. The following process map represents
an aggregate process of requisition approval at previously profiled companies:12

FIGURE 1: AGGREGATE REQUISITION APPROVAL PROCESS AT PREVIOUSLY PROFILED COMPANIES

In its 2005 study,


Achieving Operational Excellence
in Recruiting, the Recruiting
Roundtable finds that companies
handling requisition creation
effectively reduce time-to-fill by an
average of 5.1 days.2

 2007 Corporate Executive Board. All Rights Reserved.


Catalog Number: CLC17GPZ1H
CORPORATE LEADERSHIP COUNCIL ® PAGE 2
B EST PRACTICES IN HIGHLY FUNCTIONING R ECRUITING D EPARTMENTS K EY FINDINGS

SOURCING Manage sourcing structure, relationship with business units, internal sourcing, and vendor management as a
talent pipeline business model.

Sourcing Structure—The following sourcing models have been recognized by the Council or the Electronic Recruiting Exchange as
effective recruiting structures with particular advantages: 345

TABLE 1: BEST PRACTICE SOURCING STRUCTURES


Model Advantage Company Example
Enables sourcers to Microsoft composes its sourcing function with three types of specialists that serve each business unit,
Align develop a thorough including:3
Sourcers by understanding of the
Business business needs of the § Researchers, who generate leads
Unit division for which they § Callers, who conduct cold calls to passive candidates
are sourcing § Account managers, who market candidates to full life-cycle recruiters from each business unit
Electronic Arts structures its sourcing team to work in “pods,” which consist of sourcers (“hunters”),
Align Enables sourcers to
front-line recruiters (“farmers”), and talent coordinators. Each pod works together on similar job
Sourcers by build expertise in a
functions across the enterprise, which allows them to build expertise, share candidates, leverage
Job Function specific job content
relationship networks, and optimize team productivity.4
Capital One divided its recruiting team into two specialities. Sourcing specialists are assigned to
specific job tracks to deepen content expertise, and channel coordinators are organized according to
sourcing channel expertise, as detailed below:5
Sourcing Specialists Channel Coordinators
Align Enables sourcers to
Sourcers by oversee the § Work with hiring managers to understand hiring § Monitor and manage channel performance
Sourcing performance of each needs and specific skills requirements and cost
Channel channel § Interface with appropriate channel coordinator § Suggest strategy ideas and approaches to the
to assess channel options to devise a sourcing sourcing team and/or hiring managers
strategy § Supervise the relationship with channel
§ Develop and own the sourcing strategy for participants, negotiating contract terms
specific job tracks § Research trends, new market players, and best
§ Conduct preliminary candidate screening practices in channel strategy

Relationship with Business Units—The Electronic Recruiting Exchange recognized Valero Energy in 2006 as an organization with a
leading recruitment process. Valero’s primary differentiator is its business process model for recruiting, by which the recruiting
function forms a talent pipeline to ensure that the organization receives proper timing, placement, volume, and quality of talent.6
The recruiting function exhibits best practices in managing a cooperative, results -oriented relationship with business units,
as detailed below:7

TABLE 2: V ALERO’S RECRUITING RELATIONSHIP WITH BUSINESS UNITS


Practice 1: Practice 2: Practice 3:
Mass-Customized Recruiting Recruiting Prioritization Service -Level Agreements (SLAs)
In order to meet the distinct needs Valero has found that The recruiting department maintains SLAs with line managers, which establish
of business units, Valero borrowed 20% of new hires agreements of service from both parties. The recruiting department
a mass-customized approach from generate 80% of business guarantees to hiring managers the following services during each recruiting
outsourced manufacturing and impact. As such, the life cycle:
applied it to recruiting. Upon recruiting department
receiving the projected labor works with senior § Within 48 hours of a position request, recruiting will create the sourcing
needs data, each business unit management to prioritize plan, a screening questionnaire, and a testing plan, and recruiting will post
defines its staffing, developmental, its recruiting efforts the job to all targeted boards and labor suppliers
and training needs. The recruiting towards certain divisions . § Within seven days of a position request, recruiting will search the Web, all
and organizational development major job boards, and the internal database, and then present the top
functions work together to provide candidates to the hiring manager
customized solutions for each § Within 48 hours of the hiring manager’s request, recruiting will phone-screen
business unit. This system allows all targeted applicants to ensure that they have required skills and cultural fit
the coordination of training, § Twice per week, recruiting will reassess the candidate pool and present top
development, attraction, applicants to the hiring manager
redeployment, and retention. § Within seven days of the new hire’s first day, recruiting will complete
onboarding activities

 2007 Corporate Executive Board. All Rights Reserved.


CORPORATE LEADERSHIP COUNCIL ® PAGE 3
B EST PRACTICES IN HIGHLY FUNCTIONING R ECRUITING D EPARTMENTS K EY FINDINGS

SOURCING (Continued)

Internal vs. External Sourcing—Research reveals that leading recruiting functions treat internal and external sources of talent
identically. The recruiting functions favor one source over the other only if it routinely produces better results. This equitable
treatment demands that outside sources of labor meet extremely high objective standards, and it also applies pressure on the
managers of internal sources of labor—i.e., promotions and referrals —to maintain superior results over external sources.8

In its 2003 study, The Internal Labor Market, the Recruiting Roundtable analyzes the differences between organizations with effective
internal recruitment policies and those with ineffective recruitment policies. Effective companies are more likely than ineffective
companies to do the following:9,10

§ Assign ownership of internal mobility to the recruiting function Dedicated Internal Sourcing Unit
§ Report a high degree of standardization of internal mobility
processes across the organization Council research reveals that companies wishing to expedite the internal
§ Create policies that provide employees with greater access to recruitment process form a unit dedicated to sourcing from the internal labor
internal job opportunities, with regards to allowing hiring market. The responsibilities of an internal recruiting unit specialist include:10
managers to contact passive candidates, allowing employees
to create online skills profiles, and “time in chair” § Become an expert in fifteen high-priority positions that the company must
requirements fill at any given time
§ Discourage employees from contacting hiring managers for § Explain the entrepreneurial opportunities and specific manager skills that
informational interviews, and require manager permission or various divisions provide
notification before allowing employees to apply for positions § Schedule interviews for internal candidates
§ Require that all positions be posted internally for a set period § Gather feedback after all interviews and hiring decisions, and articulate
of time before they are posted ex ternally feedback to internal candidates
§ Possess internal mobility technologies § Ensure that the selection and hiring process is fair for all internal and
§ Report less hiring manager and employee frustration with the external parties involved
internal hiring system

Vendor Management—Companies often partner with external vendors to facilitate candidate sourcing, especially for executive and
other hard-to-fill positions. In addition to the aforementioned recognition, the Electronic Recruiting Exchange has acknowledged
Valero Energy as a leader in sourcing vendor management due to its policy regarding vendors and the automation of time-consuming
tasks. The table below details Valero’s leading vendor management practices:11

TABLE 3: V ALERO’S SOURCING V ENDOR M ANAGEMENT SYSTEM


Practice 1: The recruiting department uses a strict metrics analysis to assess suppliers. Under this system,
Equitable Treatment of only numbers-based performance impacts the decision to give repeat business to a vendor.
Sources

Practice 2: Valero assigns every new recruiting project a risk factor and every vendor a dependability index. When critical,
Vendor Dependability Index high-risk recruiting projects arise, Valero allows only vendors with high dependability index scores to work on the
projects.
Practice 3: Valero’s vendor management system automatically coordinates positions and labor needs to the associated top
Automated Vendor performing suppliers of labor. The selection process is based on historical performance metrics, such as labor
Management System type, job characteristics, speed, cost, quality, and dependability.
Practice 4: Using relevancy logic, Valero recruits on the Web with an automated, continuous process that searches more
Automated and Continuous than 30 resume boards overnight. The system automatically indexes and ranks the results and places them into
Web Searching for the applicant tracking system. A recruiter selects the most desirable candidates, and the system sends a
Candidates branding statement and an invitation for that job seeker to apply online.
Valero developed advanced pre-screening questionnaires that potential candidates complete online. This system
ensures that the top candidates selected by the technology system are not just skilled but also culturally suited to
the company and particular department. Other screening elements to replace the physical review of thousands of
Practice 5: resumes and improve the quality of candidates include the following:
Online Candidate
§ Behavioral interviewing, using a system that generates interview questions based on the manager’s defined
Assessment
competency list
§ Behavioral profiling
§ Online behavioral and competency profiling
§ Skills testing and hands -on simulations

 2007 Corporate Executive Board. All Rights Reserved.


CORPORATE LEADERSHIP COUNCIL ® PAGE 4
B EST PRACTICES IN HIGHLY FUNCTIONING R ECRUITING D EPARTMENTS K EY FINDINGS

INTERVIEWING Assign process management responsibilities to the recruiting function during the interview phase.

In its 2005 study, Achieving Operational Excellence in Recruiting, the Recruiting Roundtable reports that aggressively managing
interview timetables constitutes a key priority for recruiting professionals .12 Given their deeper understanding of an ideal candidate’s
skill set and personality attributes, the 2006 Roundtable study, The State of the Recruiting Function, finds that hiring managers take
on most of the workload during the candidate selection phase, as detailed in the table below:13

TABLE 4: OWNERSHIP OF ACTIVITIES IN THE CANDIDATE SELECTION PHASE


Application Selection of Whom Candidate Selection of Whom
Collection to Interview Interviewing to Hire
Recruiters 75.0% 38.0% 34.7% 4.2%
HR Generalists 4.2% 4.2% 1.4% 1.4%
Contract Recruiters 4.2% 2.8% 1.4% 0.0%
Administrative Assistants 5.6% 0.0% 0.0% 0.0%
Hiring Managers 0.0% 49.3% 58.3% 88.9%
External Vendors 2.8% 0.0% 0.0% 0.0%
Other 8.2% 5.7% 4.2% 5.5%

EXTENDING Coordinate efforts of the recruiting function and hiring managers to extend employment offers.
THE OFFER

The Bureau of National Affairs describes the following process for extending an employment offer, which involves coordination among
departments to ensure clear and consistent communication with successful and unsuccessful candidates . Both oral and written offers
of employment are contingent upon the employer’s verification of reference information and completion of background checks, post-
offer medical examinations, and submission of satisfactory employment-eligibility information required by law:14

TABLE 5: OWNERSHIP OF ACTIVITIES INVOLVED IN EXTENDING AN EMPLOYMENT OFFER


Extend Oral Offer to Extend Written Offer to Notify Unsuccessful
Determine Starting Salary
Candidate Candidate Candidates
Recruiters ü ü ü
Hiring Managers ü ü ü

CONDUCTING
BACKGROUND Tailor background checks to each position to improve the pre-screening process.
CHECKS

A 2003 Pinkerton survey of Fortune 1000 companies indicates that the management of background checks is commonly outsourced,
and criminal record checks are the most common pre-employment screening tool, as detailed in the chart below to the left.
In addition, profiled utilities companies from a December 2004 Council brief indicate that background checks typically take three to
five days to complete. The chart to the right provides specific turnaround periods for each vendor used:15,16
FIGURE 2: USE OF PRE-EMPLOYMENT SCREENING TOOLS AMONG FORTUNE 1000 COMPANIES
AND APPROXIMATE TURNAROUND TIME FOR BACKGROUND CHECKS AT SEVEN PROFILED COMPANIES
Turnaround
Criminal Records Checks 88% Company Vendor Used Time
Employment Verification 86%
A Verifications Incorporated 3 to 5 days
Drug Screening 78%
B Yale Associates 5 days
Education Verification 74%
General Information
Reference Checks 68% C 2 to 4 days
Services
Profess'l License Verification 59%
D Verifications Incorporated 3 to 5 days
Motor Vehicle Records 50%
E First Advantage 3 to 5 days
Credit History 36%
F Choice Point 2 to 4 days
Integrity 7%
G Pre-Screen America 7 days
0% 50% 100%
 2007 Corporate Executive Board. All Rights Reserved.
CORPORATE LEADERSHIP COUNCIL ® PAGE 5
B EST PRACTICES IN HIGHLY FUNCTIONING R ECRUITING D EPARTMENTS K EY FINDINGS

Adopt an onboarding program that facilitates a variety of teaching methods and creates accountability for
ONBOARDING
completion.

Onboarding Ownership—Council research reveals that the human resources or recruiting functions typically own the onboarding
program, while line managers execute a portion of the formal and inform al training for new hires . In addition, some companies have
separate programs for corporate and field employees. At one company previously profiled by the Council, onboarding specialists
provide new hires with personalized services, with a case load of 35 to 40 new hires across business units.17

Vendor Management—A previous Council study of six companies reports that all profiled companies design, create, and administer
onboarding programs in-house, utilizing vendors for particular content delivery media such as video production and editing.18
In contrast, Randstad North America uses an learning management system (LMS) vendor to facilitate the onboarding program across
business units and geographies . Randstand’s LMS vendor offers the following services:19

§ Allows Randstad to host the system on a different server than its own as an applicant service provider
§ Enables evaluation and accountability through integrated human capital system
§ Gives Randstad the ability to develop and deliver training programs to its client companies, which aids Randstad in building long-term relationships
with clients
§ Makes available all coursework and reports through an easy-to-use Web portal
§ Makes available a consistent set of e-learning courses to employees regardless of their location
§ Tracks the progress of all employees in training, and evaluates the effectiveness of the training

Program Components—The length of onboarding programs varies depending on the level of new hire, job type, and company
culture. Onboarding programs presented in Council research and external literature feature programs that last between one week and
one year.20 Regardless of program length, the most effective onboarding programs provide a variety of teaching methods and hold
participants and managers accountable for the completion of the program. The following two case examples illustrate the program
components of two onboarding programs featured in Council research and external literature:21,22

FIGURE 3: RANDSTAD NORTH AMERICA’S ONBOARDING PROGRAM FIGURE 4: DAIMLERCHRYSLER SERVICES NORTH AMERICA LLC
ONBOARDING TIMELINE
Randstad North America experienced a reported onboarding ROI of
over 300% after implementing the following changes to its Time
Process/Stakeholders
onboarding program: Frame
HR sends w elcome mailing several weeks before the new
§ Transformation of the six -week onboarding program into a hire’s start date. The package contains the following:
16-week blended learning curriculum that reduces classroom Phase 1:
instruction and includes more self -guided e-learning and Before the § Welcome DVD
on-the-job activities first day § Link to external Web site containing company benefits,
§ Elimination of four days of classroom training, with the remaining performance, location, and contact information
classroom days reserved for teaching the Randstad culture
§ Institution of manager-facilitated training, which includes two two- The first day or week consists of the following:
day courses delivered by employees’ district managers on topics
that include company culture and values, job expectations, sales § Meeting with local coordinator, supervisor, team,
training, and performance and bonus plans and peer mentor
Phase 2:
§ Institution of job shadowing and manager coaching § Benefits overview and Q&A by content expert
First week
§ Institution of online tests for employees to take each month to § Lunch with supervisor and team
account for the month’s teachings, culminating in a § Company scavenger hunt
comprehensive final exam at the end of the fourth month to § Company overview by senior manager or vice president
receive certif icates of achievement from managers
§ Institution of accountability for employees’ onboarding progress to Various events during the new hire’s first months include:
the direct line managers, with the ease of use of the LMS system
and frequent reminder messages from senior executives § Participation in facilities tours and information sessions
facilitating this shift in responsibility Phase 3:
First six with other new hires led by HR
Onboarding Activities by Month months § New hire “lunch and learns” offered periodically by HR
on the topics of benefits, performance standards,
Number of Training Hours

customers and service, and various departments


70 Instructor-led training
60 Manager-led training The formal graduation event marks transition from new hire
50 to fully integrated employee through the following activities:
Self-study
40
30 Shadowing Phase 4: § Celebration ceremony and awarding of certificates by HR
20 Six to nine § Two-phase innovation workshops wherein new hires work
Manager coaching months with local coordinators to generate process improvement
10
ideas and present their f indings to executives at the
0 graduation ceremony
Month 1 Month 2 Month 3 Month 4
 2007 Corporate Executive Board. All Rights Reserved.
CORPORATE LEADERSHIP COUNCIL ® PAGE 6
B EST PRACTICES IN HIGHLY FUNCTIONING R ECRUITING D EPARTMENTS K EY FINDINGS

PROFESSIONAL SERVICES NOTE

The Corporate Leadership Council (CLC™) has worked to ensure the accuracy of the information it
provides to its members. This project relies upon data obtained from many sources, however, and the
CLC cannot guarantee the accuracy of the information or its analysis in all cases. Furthermore, the CLC
is not engaged in rendering legal, accounting, or other professional services. Its projects should not be
construed as professional advice on any particular set of facts or circumstances. Members requiring
such services are advised to consult an appropriate professional. Neither Corporate Executive Board
nor its programs are responsible for any claims or losses that may arise from any errors or omissions in
their reports, whether caused by Corporate Executive Board or its sources.

1
Corporate Leadership Council, Headcount and Offer Approval Process,
Washington: Corporate Executive Board (August 2005).
2
Recruiting Roundtable, Achieving Operational Excellence in Recruiting,
Washington: Corporate Executive Board (January 2005).
(Due to copyright restrictions, a copy of this article cannot be provided.)
3
Vlastelica, John, "Discussion with Rob McIntosh, Technical Central Staffing Manager, Microsoft," Recruiting Toolbox
(November/December 2005). (Obtained through http://www.recruitingtoolbox.com/newsletter-nov.html).
[Accessed 7 February 2007].
4
Lefkow, Dave, "Lessons from Sourcing Leaders," Electronic Recruiting Exchange (22 March 2005).
(Obtained through http://www.ere.net/articles/db/7ACEC06C6261425C99F42FC178DF46E7.asp).
[Accessed 7 February 2007].
5
Recruiting Roundtable, Rethinking Recruiting Roles and Structures: Balancing Role Specialization with Continued
Focus on Cost and Productivity, Washington: Corporate Executive Board (August 2001).
(Due to copyright restrictions, a copy of this article cannot be provided.)
6
Sullivan, John and Master Burnett, "Six Best Practices in Recruiting: ERE Award Winners Valero Energy, Quicken
Loans, Deloitte, and PacifiCare, HP, and Whirlpool," Electronic Recruiting Exchange (20 March 2006).
(Obtained through http://www.ere.net/articles/db/70F68EF23A32444F88413490716BBD32.asp).
[Accessed 7 February 2007].
7
Sullivan, John, "How a Former CEO Built a World-Class Recruiting Department: Parts One Through Five,"
Electronic Recruiting Exchange (19 September 2005 through 17 October 2005).
(Obtained through http://www.ere.net/articles/db/9C284A6ED9DE4FE7B73FFCCCA794BBA7.asp}).
[Accessed 7 February 2007].
8
Sullivan, John, "How a Former CEO Built a World-Class Recruiting Department: Parts One Through Five."
9
Recruiting Roundtable, The Internal Labor Market: Results of a Member Survey,
Washington: Corporate Executive Board (2003). (Due to copyright restrictions, a copy of this article cannot be provided.)
10
Corporate Leadership Council, Efficient Internal Labor Market, Washington: Corporate Executive Board (1996).
11
Sullivan, John, "How a Former CEO Built a World-Class Recruiting Department: Parts One Through Five."
12
Recruiting Roundtable, Achieving Operational Excellence in Recruiting.
13
Recruiting Roundtable, The State of the Recruiting Function, Washington: Corporate Executive Board (January 2006).
(Due to copyright restrictions, a copy of this article cannot be provided.)
14
Human Resources Library, "Hiring Policy and Procedures." The Bureau of National Affairs, Incorporated.
[Accessed 6 February 2007]. (Due to copyright restrictions, a copy of this article cannot be provided.)
15
Pinkerton Incorporated, Top Security Threats and Management Issues Facing Corporate America. Pinkerton, 2003.
16
Corporate Leadership Council, Background Checks in the Utilities Industry,
Washington: Corporate Executive Board (December 2004).
17
Corporate Leadership Council, Models and Methodologies for On-Boarding Programs ,
Washington: Corporate Executive Board (October 2003).
18
Corporate Leadership Council, Models and Methodologies for On-Boarding Programs .
19
Sussman, Dan, "Getting Up to Speed: Revamped Program Compresses Employee Time to Competency,"
T+D (December 2005). (Obtained through EBSCO).
20
Corporate Leadership Council, Models and Methodologies for On-Boarding Programs .
21
Sussman, Dan, "Getting Up to Speed: Revamped Program Compresses Employee Time to Competency."
22
Corporate Leadership Council, Navigate!-ing New Hires' Onboarding Experience,
Washington: Corporate Executive Board (2005).

 2007 Corporate Executive Board. All Rights Reserved.

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